So we have all heard the news about Charlie Kirk, the commentator who was shot at a public event. And this news is even starting to filter into the markets, as communications giant Comcast (CMCSA) took its news divisions to task over their coverage of the event. Investors seemed less than pleased as well, as shares were down over 1.5% in the closing minutes of Monday’s trading.
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The news already looked bad for Comcast, as it fired one of its own, MSNBC analyst Matthew Dowd, after he made what reports called the suggestion that Kirk’s own “hateful” rhetoric—a point which itself was quickly disputed by Kirk’s audience—led to his death.
That in turn prompted not only Dowd’s firing, but also a memo from multiple Comcast executives, which read in part: “You may have seen that MSNBC recently ended its association with a contributor who made an unacceptable and insensitive comment about this horrific event. That coverage was at odds with fostering civil dialogue and being willing to listen to the points of view of those who have differing opinions. We should be able to disagree, robustly and passionately, but, ultimately, with respect. We need to do better.”
Tax on Advertising? Illegal, Says Comcast
Meanwhile, Comcast is facing a serious move in Washington State, poised to go live on October 1. Washington is apparently looking to launch a new sales tax on advertising services, which was set to bring in somewhere around half a billion in new revenue for the state over the next four years. But Comcast asserts that this move is illegal, and is suing accordingly.
Comcast noted that not all advertising services will face this sales tax call, and that in turn makes it a violation of federal law. Advertising conducted over the internet was subject to the tax, but those efforts conducted offline are not. Since individual states are forbidden from establishing “discriminatory taxes,” according to the Internet Tax Freedom Act, that would seem to put it at loggerheads with the Washington law.
Is Comcast Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on eight Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 16.01% loss in its share price over the past year, the average CMCSA price target of $40.44 per share implies 24.09% upside potential.
